SF 2386: Relating to indirect costs charged to state-funded grants, and including applicability provisions

What it does

This bill provides that indirect costs, as defined in the bill, charged to a state-funded grant awarded or amended on or after July 1, 2026, must not exceed percent of the total grant amount and prohibits a department or establishment from approving a budget or reimbursement request that would exceed that limit unless expressly authorized by law. A grantee is prohibited from reclassifying an indirect cost as a direct cost and from charging an indirect cost on top of a direct cost that includes an allocable share of indirect costs.

Senate subcommittee · named January 27, 2026

• Sen. Dennis Guth (R) · dennis.guth@legis.iowa.gov
• Sen. Jeff Reichman (R) · jeff.reichman@legis.iowa.gov
• Sen. Art Staed (D) · art.staed@legis.iowa.gov

Lobbying · 0 for, 19 against

Against: Coalition for Family and Children's Services in Iowa; Easterseals Iowa; Ellipsis; Four Oaks; Free Clinics of Iowa; Iowa Alliance of YMCA's; Iowa Association of Community Providers; Iowa Behavioral Health Association (IBHA); Iowa Coalition Against Domestic Violence; Iowa Community Action Association; Iowa Homeless Coalition; Iowa Housing Partnership; and 7 more

In plain words

1. January 27, 2026Filed in the Senate and sent to the State Government committee · as SSB 3074
2. January 27, 2026Senate subcommittee named: Guth, Reichman and Staed · as SSB 3074
3. January 29, 2026Subcommittee recommended passing it with changes · as SSB 3074
4. February 18, 2026Approved by the Senate committee, and given a new number: SF 2386 · as SSB 3074
5. February 19, 2026Filed in the Senate
6. February 19, 2026Approved by the Senate committee